Category: Business

Information regarding the business sector

Vale preparing for potential fuel leak from damaged ore carrier

Brazilian mining company Vale SA has begun preparations for a potential fuel leak from the damaged iron ore carrier MV Stellar Banner, which is stranded off the Brazilian northern coast with 4,000 tones of fuel aboard. Vale said in a statement it requested Petrobras appropriate ships to deal with the possible leak and has arranged for the dispatch of oceanic buoys to the area. The MV Stellar Banner, owned by South Korea’s Polaris, had only started its trip to China carrying iron ore when it was stranded.

Brazil to allow for automatic approval of new agrochemicals

Brazil’s Agriculture Ministry will allow for agrochemicals awaiting regulatory approval to receive licenses automatically, potentially allowing new pesticides to reach market faster, according to new rules published in the government gazette with effect on April 1. If the ministry fails to review applications for new chemicals to be licensed within 60 days, the products will automatically be approved, although they will still need to receive separate approvals by the Health and Environment Ministries before going on the market.

Marcopolo net profit falls 2% in Q4 to R$68.5 million

Net profit of bus manufacturer Marcopolo fell 2% in the fourth quarter compared to the same period in 2018, to R$68.5 million ($ 15.3mn). In the year, the net profit of the Brazilian bus manufacturer was R$201.4 million, an increase of 8% compared to 2018. Although the Brazilian bus production increased 9.5% last year, to 25,469 units, that of Marcopolo decreased 4.2%. Domestic market demand grew 20.8% compared to 2018, offsetting the 14.6% drop in exports.

Bovespa tumbles 7% as coronavirus fear grips stocks, oil markets

Stocks and oil prices resumed their fall on Wednesday due to increasing concern over coronavirus spread. On Wall Street, the emerging market stocks lost 1.25%. Brazil’s Bovespa index tumbled 7%, catching up with the selloff after a long carnival holiday, and the same day a first case of coronavirus in the country was confirmed. Argentina’s S&P Merval fell 5.65%. U.S. crude fell 2.38% to $48.71 per barrel and Brent was last at $53.41, down 2.8% on the day.

Brazil confirms first coronavirus case in Latin America

A Brazilian government test has confirmed the first case of coronavirus in Latin America, after a Sao Paulo hospital flagged the possible infection of a 61-year-old who had visited Lombardy, in northern Italy. The diagnosis comes during Brazil’s carnival holiday, a peak time for domestic travel when millions of revellers throng major cities for boisterous street celebrations. Sao Paulo stock market, which has been closed since last week, is set to open at 1 p.m. local time. Brazilian shares in exchange-traded funds in New York have dropped nearly 6% this week.

Carnaval 2020 expected to inject $2 billion into Rio’s economy

The extended holiday is expected to generate R$8 billion ($2bn) billion in tourism-related activities this year, estimates the National Confederation of Goods, Services, and Tourism (CNC). If confirmed, the turnover represents a one percent real increase over the same period last year and the highest figure since 2015. According to the CNC, “the gradual rebound of economic activity”, low inflation and a stronger dollar against Brazilian real should favour a greater inflow of tourists.

Iberdrola post 13% net profit up in 2019 and targets growth in 2020

Leading global wind power producer Iberdrola posted a 13% net profit increase in 2019, meeting its broad growth target. Powering more than 30 million homes and businesses in Spain, the United States, Brazil and Britain brought Iberdrola a net profit of 3.41 billion euros ($3.7 billion) in the period. Iberdrola’s shares have risen around 20% so far this year and were up 0.5% on Wednesday morning.

Brazilian ETF shares in U.S. down 1.2%, expectations for Sao Paulo

Worries about the spread of coronavirus and its potential impact on the global economy pushed down the index for Brazilian shares in exchange-traded funds on the New York stock market on Tuesday. Around 5:20pm local time, iShares MSCI Brazil , an index fund, or ETF, for Brazilian stocks traded in New York, slipped 1.2% to 39.84 points, while the Dow Jones Brazil Titans 20 ADR, which combines the main Brazilian ADRs, fell 2% to 20,711.20 points. Trading at the Sao Paulo stock exchange is expected to resume at 1pm local time after being closed Monday and Tuesday for Brazil’s Carnival holiday.